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Essay

Economics: Price Elasticities

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Miscellaneous

 

Written by:

Johnnie S

 

Date added:

November 25, 2016

 

Level:

University

 

Grade:

B

 

No of pages / words:

4 / 1020

 

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3801 times

 

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Essay content:

When we interpret the value of the price elasticity of demand, we just quote the absolute value. The absolute value of PED range from zero to infinity. When PED is greater than one, the demand for the good is said to be price elastic. It means that a proportionate change in price causes a more than proportionate change in quantity demanded, ceteris paribus...
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It means that a proportionate change in price causes a more than proportionate change in quantity demanded, ceteris paribus. When PED is less than one, demand for the good is said to be price inelastic. This means that a proportionate change in price of the good causes a less than proportionate change in quantity demanded, ceteris paribus...
displayed 300 characters

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